{
  "id": 6294964,
  "title": "$1.5 million in your 401(k)? Here’s what your RMD taxes will look like — and the very best trick to lower them",
  "url": "https://urgent.news/2026/09/08/1-5-million-in-your-401-k-heres-what-your-rmd-taxes-will-look-like",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-08T15:55:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/options/articles/1-5-million-401-k-155500152.html"
  },
  "original_language": "en",
  "account": "With $1.5 million stashed in a 401(k) plan, 769,000 Americans have reached the milestone of a seven-figure retirement account as of June 2026, according to Fidelity data shared by Yahoo Finance. While this number may seem minute compared to the total adult population, those in possession of such wealth are sitting on a significant tax bill. The IRS imposes required minimum distributions (RMDs) at the age of 73, which must be taken every year thereafter. These RMDs are taxed as ordinary income, and they can potentially push individuals into higher tax brackets. The annual RMD for a $1.5 million account would be $56,603, based on a 26.5 distribution period, calculated by dividing the account balance by the IRS Uniform Lifetime Table's life expectancy for a 73-year-old. Millionaires entering this realm should be wary of additional expenses, such as IRMAA surcharges or taxable Social Security benefits, which could arise from their RMDs. To mitigate the financial impact of RMDs, strategizing to draw down tax-deferred retirement accounts before reaching RMD age is recommended. However, this approach requires careful planning to avoid triggering capital gains and taxes later on. Utilizing resources like Empower, which connects users with tax professionals for managing multiple retirement accounts, can help navigate the complexities of RMDs and optimize savings. Additionally, seeking guidance from qualified financial planners, such as those vouched for by Advisor.com, can provide tailored strategies to lower RMDs gradually over time.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}